GRE Essay Topic 844 - The following appeared in a memo from the marketing director of Bargain Brand Cereals. "One year ago we introduced our first product, 'Bargain Brand' breakfast cereal. Our very low prices quickly drew many customers away from the top-selling cereal companies. Although the companies producing the top brands have since tried to compete with us by lowering their prices, and although several plan to introduce their own budget brands, not once have we needed to raise our prices to continue making a profit. Given our success selling cereal, Bargain Brand should now expand its business and begin marketing other low-priced food products as quickly as possible. " Discuss how well reasoned you find this argument.
Author: liweili | Date: August 23, 2007 | Score: 5
In this argument, the arguer is confident in making a satisfactory profit by introducing low-priced products as soon as they can. To support it, he looks at the successful win after Bargain Brand Cereals began to sale Bargain Brand breakfast cereal over other big companies. Sound and convincing a...
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In this memo, the author recommends that Bargain Brand should enlarge its business and invest in other low-priced food products based on their first success in selling cereal with a low price. To support his claim, the author points out that the cheap product drew the attention of customers from the top cereal companies and continued to help Bargain Brand Cereals to make a profit. But this argument, as well as its supports, reveals that there are quite a few unconvincing aspects, and thus, we cannot accept the author's conclusion.
Even though the very low prices quickly attract many customs away from other firms, we do not know the exact profit this product make. Indeed, the author of the memo just gave a vague description about the outgrowth of cutting down the price. However, we have no idea about the number of the customers coming from top-selling companies to Bargain Bread. It is possible that other companies do not care about the cereals market, which leads to the results of the success of Bargain Bread.
Another crucial problem is the reason for the success of Bargain Bread Cereal. When taking more aspects into consideration, there are plenty of causes that could result in the failure of the other companies in the cereal market. For instance, although other companies started to lower their price and put forward to their own budget brands, their advertisement is poor and thus the customers were not aware of their promotion.
Finally, even if the success of the cereal is real and the profit it makes is huge, we cannot simply judge that other product will succeed in the same way. In fact, there are a lot of facts which will influent the product market, such as the preference of the customer, the current competitors in the market , and unique or creativity of their own product. To support the author's claim, more information and investment about the product and its market should be provided to determine if it is proper to use the stratagem of a low price.
While the memo does highlight a possibility that lowering the price of a product may lead its success in its market, this author's argument is not likely significantly to support his claim. As a matter of fact, more detailed information about the sale and buy market is required to justify if it will be helpful that Bargain Bread applies the strategy of lowering the price of the new product.Read more